Did Rishi Sunak ‘scrap’ net zero measures – or were they not even policies?

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2 years ago

September 22, 2023

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This week, Rishi Sunak made a surprise speech announcing delays to a number of key Conservative pledges aimed at cutting greenhouse gas emissions.

But alongside a five-year delay to the ban on selling new petrol and diesel cars, and various changes to promises on oil and gas boilers, the prime minister also claimed he was scrapping a number of more “heavy-handed measures” that would hit people in their pockets.

These elements have caused some controversy, with former ministers accusing him of “pretending to halt frightening proposals that simply do not exist”, and calling them “straw men” that were never even government policy.

Politics Hub: PM ‘undeterred’ by net zero backlash

However, Mr Sunak has insisted they are measures that have been “raised by very credible people about ways to meet our net zero obligations”.

So what has Mr Sunak claimed to have scrapped? And were they ever on the Tory agenda in the first place?

Compulsory carpooling

First up, the prime minister said: “The proposal for government to interfere in how many passengers you can have in your car – I’ve scrapped it.”

The government has sung the praises of carpooling – often referred to as lift sharing – before.

In 2022, the Department for Transport issued guidance to councils about the benefits of introducing schemes locally, saying increasing the number of people in each vehicle by 1% annually between 2022 and 2030 would remove 1.25 million cars from the road and result in an annual reduction in CO2 of 1.25 metric tons.

Encouraging carpooling was also among the recommendations made by the independent Climate Change Committee, set up as part of the Climate Change Act to advise the UK on tackling the issue.

Its members said two-thirds of car trips are undertaken with just the driver, and introducing carpool lanes could help improve the figures, while “societal pressure to increase car occupancy could play a role as the public becomes increasingly environmentally aware”.

But making carpooling compulsory was never government policy.

Recycling bins

The next policy Mr Sunak claimed to have scrapped was “the proposal that we should force you to have seven different bins in your home” for recycling.

Legislation passed in 2021 means local authorities have to arrange collections for paper, plastic, metal and glass, as well as food, garden and general household waste – but there never seems to have been a rule introduced for them to be taken in separate bins.

The government had been looking into ways to make recycling more consistent across the country, and reforms had been expected in March – though reports suggest they were delayed so as not to impact local elections.

That plan is still expected to come from the Department for Environment, Food and Rural Affairs, but after the prime minister’s speech it confirmed “it was never the case that seven bins would be needed by households”.

Meat taxes

Mr Sunak also said in his speech he had now scrapped “the proposal to make you change your diet – and harm British farmers – by taxing meat”.

The idea of a meat tax has been touted by a number of climate experts as an effective way to reduce emissions due to the amount of greenhouse gases created in the farming process.

In the Climate Change Committee’s report to parliament last year, they brought up the prospect of “diet change”, saying: “Cutting back [on meat] can contribute to healthier diets, reduce direct emissions from food production in the agriculture sector and also free up land that can be used for carbon sequestration.”

But the report also said there were “no policies in place to capitalise on [the] momentum” of people already reducing the amount of meat they eat.

The committee said “steps must be taken to encourage a shift to healthier diets with reduced consumption of meat and dairy”, pointing to measures adopted by local councils going plant-based at events they host, and a “unique” commitment by the Welsh government to “promote a dietary shift to a healthier and suitable diet, recognising the benefits for climate, health and wider sustainability”.

However, these are recommendations, and the government did not have a policy or plan to bring in meat taxes.

Flying taxes

In his final list of policies he had scrapped, Mr Sunak pointed to the proposal to “create new taxes to discourage flying or going on holiday”.

Aviation has long been a target of those wanting to cut emissions and numerous policy papers have pointed to additional taxes as a way to put people off air travel.

But it has never been looked at favourably by the Conservatives, with Mr Sunak himself cutting existing air passenger duty on domestic flights back in 2021 when he was chancellor – just days before the COP26 summit in Glasgow.

Back to the Climate Change Committee report again, and it repeatedly recommends “fiscal policy” such as “taxation, quotas or a frequent flyer levy” to “increase the price of flying to reflect the high emissions cost of air travel and incentivise low-emission alternatives, e.g. rail travel”.

It also calls for improvements to broadband to encourage people to use videoconferencing instead of taking flights to meetings, as well as “fair funding mechanisms” to make greener alternatives more affordable, and says such policies could be reviewed if new technology comes on the scene to make flying more environmentally friendly.

But while the committee hammers home its point that taxes “should send clearer signals to consumers on the high emissions cost of flying”, this has not been adopted by the government as official policy.

Politics

IRS appoints Trish Turner to head crypto division amid resignations

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4 hours ago

May 6, 2025

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IRS appoints Trish Turner to head crypto division amid resignations

Veteran US Internal Revenue Service (IRS) official Trish Turner was appointed to lead the agency’s digital assets division following the departure of two key crypto-focused executives.

Turner, who has spent over 20 years at the IRS and most recently served as a senior adviser within the Digital Assets Office, will now head the unit, according to a report from Bloomberg Tax citing a person familiar with the situation.

Her promotion marks a significant leadership transition at a time when US crypto tax enforcement is facing both internal and external pressures.

On May 5, Sulolit “Raj” Mukherjee and Seth Wilks, two private-sector experts brought in to lead the IRS’s crypto unit, exited after roughly a year in their roles.

Mukherjee served as compliance and implementation executive director, while Wilks oversaw strategy and development. Wilks announced his departure on LinkedIn, while Mukherjee confirmed his decision in a statement to Bloomberg Tax.

“The reality is that federal employees have faced a very difficult environment over the past few months,” Wilks wrote. “If stepping aside helps preserve someone else’s job, then I am at peace with the decision.”

IRS ramps up crypto scrutiny

The IRS has ramped up its focus on cryptocurrency in recent years, increasing audits and criminal probes targeting digital asset transactions.

It also attempted to introduce broad crypto broker reporting requirements, which drew sharp criticism from industry stakeholders and was eventually overturned by President Donald Trump.

Set to take effect in 2027, the so-called IRS DeFi broker rule would have expanded the tax authority’s existing reporting requirements to include DeFi platforms, requiring them to disclose gross proceeds from crypto sales, including information regarding taxpayers involved in the transactions.

Turner’s leadership also comes during a shift in Washington’s approach to crypto regulation.

With the return of the Trump administration in January, federal agencies have scaled back regulations perceived as burdensome to digital asset innovation.

For instance, the Securities and Exchange Commission has dropped or paused over a dozen enforcement cases against crypto companies. Additionally, the Department of Justice has announced the dissolution of its cryptocurrency enforcement unit, signaling a softer approach to the sector.

Internally, the IRS is also navigating instability. Over 23,000 employees have reportedly expressed interest in resigning after Trump reintroduced a deferred resignation policy, raising concerns about long-term staffing and morale within the agency.

Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest, April 27 – May 3

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OKX exec warns against hype amid real-world asset tokenization boom

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5 hours ago

May 6, 2025

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OKX exec warns against hype amid real-world asset tokenization boom

The CEO of crypto exchange OKX’s Middle East and North Africa (MENA) division has called on the industry to prioritize real-world utility as interest in tokenizing real-world assets (RWAs) continues to grow.

In a Cointelegraph interview at the Token20249 event in Dubai, OKX MENA CEO Rifad Mahasneh warned that while tokenization is promising, projects must “clearly demonstrate” the benefits of tokenizing specific assets.

“In some cases, we’re tokenizing things that don’t need tokenization, but in some cases, we’re tokenizing things that actually give you real, everyday value, right? And if you can see that everyday value, then that is a promising project,” Mahasneh told Cointelegraph.

He said hype can drive project growth in the Web3 space, but providing everyday value should be the priority.

RWA tokenization gains traction in the UAE

Mahasneh’s comments come amid an increase in real-world asset tokenization projects in the Middle East, including the United Arab Emirates.

On May 1, MultiBank Group signed a $3 billion RWA agreement with the UAE-based real-estate firm MAG and blockchain infrastructure provider Mavryk — the largest RWA initiative worldwide to date.

In addition to billions in RWA deals, the UAE government has started working on RWA tokenization. On March 19, the Dubai Land Department — the government agency responsible for promoting, organizing and registering real estate in Dubai — announced a pilot phase of its real-estate tokenization project. The agency is working with Dubai’s Virtual Assets Regulatory Authority (VARA), the emirate’s crypto regulator.

On Jan. 9, RWA project Mantra also signed a $1 billion deal with Damac Group to tokenize the assets of the UAE-based conglomerate. However, months later, Mantra saw one of the biggest token collapses in crypto history, wiping out billions in market capitalization on April 13.

Mahasneh told Cointelegraph that the region’s clear regulations help drive bigger institutions to get into tokenization and crypto. He said regulatory clarity allows understanding of how key players in the space, like exchanges, are governed.

UAE stablecoin framework gives institutions confidence

The executive also praised the region’s progress in stablecoin regulations. In June 2024, the Central Bank of the UAE approved a regulatory framework for stablecoin licensing. This clarified the issuance, supervision and licensing of dirham-backed payment tokens.

According to Mahasneh, this demonstrates the UAE’s speed in regulating crypto-related technologies. The executive also highlighted that the central bank’s involvement gives institutions extra confidence in entering the business.

“Other markets are still debating whether they should have crypto regulations. Here, we moved into developing stablecoin regulations. For an investor, you want to know that your stablecoin is regulated. That’s a big plus,” Mahasneh said.

Since then, major players like Tether have joined the race by issuing a dirham-pegged stablecoin. On April 29, institutions like Abu Dhabi’s sovereign wealth fund, the Abu Dhabi Developmental Holding Company (ADQ), First Abu Dhabi Bank and the International Holding Company partnered to launch a dirham-pegged stablecoin, pending regulatory approval.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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US Senate crypto bills stall amid Trump ties and ethics concerns

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5 hours ago

May 6, 2025

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US Senate crypto bills stall amid Trump ties and ethics concerns

Efforts to pass crypto legislation in the US Senate face mounting resistance amid growing ethical concerns around US President Donald Trump’s ties to crypto.

In a May 5 letter to the Office of Government Ethics, Senators Elizabeth Warren and Jeff Merkley said that Trump and his family stand to personally profit from an investment involving UAE state-backed firm MGX, crypto exchange Binance and World Liberty Financial (WLFI).

The senators called for an urgent probe, warning the deal may violate the US Constitution’s Emoluments Clause and federal bribery statutes.

At the center of the controversy is WLFI’s USD1 stablecoin, reportedly chosen for a $2 billion investment MGX plans to make into Binance.

The senators said the transaction amounts to a potential backdoor for foreign influence and self-enrichment, with Trump’s allies allegedly set to receive hundreds of millions of dollars:

“This deal raises the troubling prospect that the Trump and Witkoff families could expand the use of their stablecoin as an avenue to profit from foreign corruption.”

Further complicating ethics concerns, Trump hosted a $1.5 million-per-plate dinner on May 5 at his golf club in Sterling, Virginia. The event came just days after hosting a $1 million-per-plate fundraiser for the MAGA super PAC.

He also plans to hold a gala dinner with major Official Trump (TRUMP) memecoin holders on May 22, despite multiple US lawmakers expressing concerns.

GENIUS Act faces roadblocks

The Trump family’s controversial $2 billion crypto deal comes as the Senate prepares to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and other crypto-related bills.

The fallout is already being felt in Congress. Some Democratic lawmakers are pushing for additional hearings before advancing any legislation, while others question whether Trump’s personal stake in digital assets is undermining bipartisan support for crypto regulation.

On May 5, Senate Majority Leader John Thune signaled a willingness to amend the GOP-backed stablecoin legislation to pass the bill in the coming weeks.

Speaking to reporters, Thune said changes can be made on the floor and that he is waiting to hear what Democrats are asking for, per a report from Politico.

Internal GOP challenges also remain, with Senator Rand Paul expressing uncertainty about backing the bill, according to the report.

The stalling isn’t limited to the Senate. House Financial Services Committee ranking member Representative Maxine Waters plans to block a Republican-led event discussing digital assets on May 6.

The hearing, “American Innovation and the Future of Digital Assets,” will discuss a new crypto markets draft discussion paper pitched by the House agricultural and financial services committee chairs, Representatives Glenn Thompson and French Hill, respectively.

Crypto community slams political pushback

Prominent crypto figures are speaking out as political resistance threatens to derail stablecoin legislation in the Senate.

“Elizabeth Warren and Chuck Schumer haven’t learned their lesson,” Tyler Winklevoss, co-founder of Gemini, posted on X.

“If they want Democrats to continue losing elections, they will continue standing in front of crypto legislation like the stablecoin bill which they are stalling out in the Senate.”